What kind of fund is a mainstay in the rest of the world, but not the United States? Global funds.3 Great Global Funds
Russel Kinnel: Global funds are more popular in the rest of the world than the U.S. The main reason is that the U.S. represents about 60% of the global indexes, so adding a global fund seems rather redundant if you’ve already got a lot of U.S. funds.
But I like the idea of having a manager who can pick the best stocks regardless of domicile. Or in the case of a passive fund, you get a complete all-in-one fund that gives you exposure to a massive amount of stocks in countries around the world. Let’s look at three of my favorites.
3 Great Global Funds
These global funds earn a Morningstar Analyst Rating of Silver or Gold.
- Dodge & Cox Global Stock (DODWX)
- T. Rowe Price Global Growth Stock (RPGEX)
- Vanguard Global Minimum Volatility (VMNVX)
Dodge & Cox Global Stock (DODWX) is a Gold-rated value strategy. Dodge & Cox has a deep team of fundamental managers and analysts who take the long-term view of value. They are patient investors who focus on the best values and don’t worry too much about short-term results. Lately a surging dollar has held back results here, but that could turn into a tailwind as these trends tend to reverse.
T. Rowe Price Global Growth Stock (RPGEX) is a Gold-rated gem run by Scott Berg. Berg and T. Rowe’s outstanding analyst team seek out companies with underappreciated growth potential. Berg doesn’t really care too much about the sector or country weights of a fund; he just wants great companies. The fund’s down hard in 2022 because of the bear market for growth stocks and the rising dollar, but don’t let that keep you away from a fund with great potential.
Vanguard Global Minimum Volatility (VMNVX) is a horse of another color. This is a passive fund designed to keep volatility in check. That makes it a great choice for retired investors or people who are just risk-averse. It also hedges currency because that’s another source of volatility. As you might guess, those factors means this Silver-rated fund has held up much better than other global funds. It won’t always have those tailwinds, but low costs and good design should keep this fund in the winner’s column over the long haul.
Watch 3 Great Specialized Funds for more from Russel Kinnel.